As the economy and wages improved in early 2017, first-time U.S. homebuyers were finally moving back into the market—until that turned around again.
Escalating home prices and fewer low-priced listings, CNBC reports, have taken a toll on these buyers yet again. And those who did buy had to pony up more money for less house.
The share of sales to first-time buyers this year has fallen to 34%, down slightly from the 35% posted last year, according to the National Association of Realtors’ annual Profile of Home Buyers and Sellers. That is the fourth-lowest share in the survey’s 36-year history. First-time buyers historically make up closer to 40% of homebuyers.
The drop in buyers is, in part, due to a rise in student-loan debt. For those who did buy, 41% say they have student debt, up from 40% in 2016. The average amount of debt also increased to $29,000 from $26,000 last year.
